Would you ever pay more for a bottle of water than you would for beer?

Posted on 2 CommentsPosted in How to Guide for Marketers

This past week, I was in Shanghai, China and found the price of a bottle of Evian and Fiji water about ten times the prices of local bottled water (Nestle). And when I went into the Beer section, the water was still twice the price of a Budweiser beer (produced locally). You can also buy Coke or Gatorade much cheaper.

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The prices above  are in Chinese Yuan (1 CYN = 0.15 USD), with the US Dollar equivalent being just under $2.00 US for the Evian or Fuji water, and then only 21 cents US for the Nestle water. The Budweiser is only $1 USD and the Coke is about 50 cents US. Given any worries about “don’t drink the water”, you might easily be willing to pay for the Evian. Or just grab a few Budweiser’s and not worry so much about the water.

China is in a state of dramatic change

The economy of China has been going through vast changes and you see it live on the streets of Shanghai. The contrast of the modern sky scrappers of downtown Shanghai, with the small street neighborhoods with laundry hung out on the phone lines. The increasing number of Mercedes driving past old school three wheel bikes carrying layer upon layer of boxes for delivery. High end restaurants contrasting against live chickens being killed and bagged for dinner that night. The small boutique 100 square foot stores and the 80,000 square foot Carrefour Super Markets.

While China has benefited from global trade, making Apple computers and Nike shoes to be sold around the world, the government uses protectionist practices to ensure high transfer pricing to ensure local goods benefit.

A brand like Evian, with water from the French Alps can not maintain that positioning if they begin producing in a factory just outside Shanghai. In the Carrefour, they have three specific aisles for “Imported” goods, all recognizable Western brands, but all with dramatic price premiums to the local products. This aisle might appeal to the high number of expats living in China as well as the growing Chinese upper middle class. The rest of the grocery store has 10-20% global brands interwoven among the shelves of local goods. This sets up two specific strategies, produce locally (for instance Nestle) and compete directly with the local goods, or stay in the “Imported” and use the super-premium pricing as a strategy to set yourself apart.

I remember being in France in the early 1990s, where I found myself walking all over Paris for about 4-5 hours on a 35 Celsius day. I finally came across a store selling Diet Coke and it was the equivalent of $6. I was in shock, but my thirst overcame my Scottish blood and I guzzled down the most expensive Diet Coke of my life. Later on, my wife ordered a glass of wine for $3. One more reminder that if you eat and drink like the locals, you will be much better off.

Global Pricing Management Systems

Global pricing models get very complicated. With a desire to do well in every local market, you must consider regional and global pricing to ensure you avoid any grey-market activity. Most of the big global brands are using pricing corridors by region to ensure local pricing stays local. Here are five things when considering your pricing as you enter new markets.

  1. Define your Pricing Strategy in alignment with your business strategy and business objectives and based on a deep understanding of your own competitive position, customer insight and cost-to-serve. When starting to look at your pricing, here is what you should be considering.
    • Market Price: If you are confused, pricing studies that look at various options to identify the price elasticity. In general, the more loved a brand, a combination of interesting or important are more price inelastic. One water scare and Evian could charge $5 per bottle, without seeing a change in the volume would make it an inelastic price.
    • Value Price: A brand has good value if the price is deemed “fair”. For a marketer, the mid point hits when the perceived price and perceived value match up. If the price is too high, there is a risk of losing customers/volume. If the price is too low, there is a risk of not realizing the full profitability on the brand.
    • Strategic Price: the pricing strategy can actually impact the positioning as much as it just reflects the positioning. A super premium brand like Evian can make the consumer believe it must be a super premium if it really can command that value.
    • Short vs. Long-term Revenue Pricing: Marketers can get caught up in the addiction to pricing promotions. Once you get up to 30-50% sold on deal, the actual price begins to have little meaning for the consumer.
    • Portfolio Pricing (Price Points): One option for a brand entering a local market who wants to maintain the price of their global brand would be to create a specific local brand with a local price. This would allow you to own both the super-premium and the value priced brands, with the consumer never knowing you own them both.
  2. Operationalize Pricing Strategy in marketing activities and generate all required input for Price Execution.  Here are the factors you should be considering when you operationalize your pricing into the new markets.
    • Competitor Responses
    • Not-in-Kind (NIK) Replacements
    • Reduce/Increase attractiveness of business
    • Keep out competition
    • Setting Visible Market prices
    • Customer Reaction Product Pricing Cannibalization
  3. Implement Pricing Strategy and Price Determination framework into daily sales activities and transactional processing. As you evaluate the impact of your pricing in the market, here are the factors you should be looking at.
    • Buying Power
    • Supplier Power
    • Place in the Value Chain
    • Price Elasticity
    • Global vs. Local Supply and Demand
    • Capacity
    • Substitute products
  4. Define pricing capabilities and skill sets, establish pricing organization and assure consideration of legal requirements
  5. Enable pricing capability by monitoring and provision of tools, systems and processes related to pricing in an integrated manner

Pricing Waterfall

It is good discipline for brands to map out and manage their pricing waterfall. This provides a good control tool as you can track the waterfall over time and identify problems you are encountering. Here’s an example of the dimension involved in a pricing waterfall, helping move you from a desired price to a profitable price.

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So would you pay a 90% price premium for the Evian? I did. 

Here’s a presentation we use for the deep dive analytical thinking that can help you determine your pricing.

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911.You can also find us on Twitter @belovedbrands. 

Positioning 2016.112

How to write a Brand Concept that will help you win

Posted on Leave a commentPosted in How to Guide for Marketers

A well written concept statement should replicate what you intend to put into the market. And when I say that, it starts with what can realistically fit into a Marketing Execution, either in an ad or a package. Too many Marketers try to jam everything possible into the concept to ensure that it wins. I have seen some put 10 reasons to believe support points. If you are still at the confused stage, do a benefit or claims sort to narrow your list. But never use a concept test to throw every possible thing you could ever say to the consumer.

It starts with doing the Brand Positioning homework

As we dig in on doing our homework on the brand, here are the 4 questions that a winning Brand Positioning Statement must address:

  1. Who is in the consumer target?
    • Who is the most motivated to buy what you do?
  2. Where do you play?
    • Definition of the market that you compete in
  3. What are we are selling?
    • What is your main benefit (rational/emotional)?
  4. Why should they believe us?
    • What support points to back up the main benefit?
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If we look below, the winning zone has to be better, different, cheaper or else not around for very long. You want to avoid competing in the Losing Zone, going head to head with a competitor that can deliver the consumer wants better than you can. The area with the yellow arrow is a the Risky Zone, which is a relative tie. The way to win this zone is by being first, being more innovative and creative or finding the right emotional connection that makes the rational tie less relevant to the consumer decisions. At all costs, avoid the Dumb Zone, where you wage a competitive battle in a space that the consumer does not care about. When you find yourself competing in this space, you will find yourself eventually talking to yourself.

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Who is your target?

Everything starts and ends with the Consumer in mind. Spreading your limited resources across an entire population is cost-prohibitive with low return on investment and low return on effort. While targeting everyone “just in case” might feel safe at first, it’s actually less safe because you never get to see the full impact.Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. It becomes all about choices and you will be much more effective at convincing a segment of the population to choose your brand because of the assets and promise that you have that match up perfectly to what they want. Great brands don’t go after consumers, great brands get consumers to go after the brand. The best way to get consumers motivated is to tap into their need states, by understanding what frustration points they may have. We call these consumer enemies. While products solve regular problems, beloved brands beat down the enemies that torment us every day. What are your consumer’s frustration point that they feel no one is even addressing? To paint the picture of our consumer target, you should use Consumer Insights to help to crystallize and bring to life the consumer you are targeting. The dictionary definition of the word Insight is “seeing below the surface”.Positioning 2016.020 Too many people think data, trends and facts are insights. Facts are merely on the surface—so they miss out on the depth–you need to bring those facts to life by going below the surface and transforming the facts into insights. Insight is something that everyone already knows and comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”. That’s why we laugh when we see insight projected with humor, why we get goose bumps when insight is projected with inspiration and why we cry when the insight comes alive through real-life drama. When Consumer Insights are done right, we get in the shoes of the consumer by starting the insight with the word “I” and we use the voice of the consumer by putting the insight in quotes.

As part of the positioning exercise, we recommend that you put together a complete Consumer Profile that outlines the focused definition of the target, add flavor with needs, enemies and insights and then talk about where they are now and where you’d like to move the consumer in the future.

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What’s the Benefit?

The next decision is the main benefit you want to focus on. Doing a Consumer Benefits Ladder helps to organize your thinking as a great tool for bringing the benefits to life.

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The best way to work the Consumer Benefits Ladder is to hold a brainstorming session with everyone who works on the brand so you can:

  • Leverage all the available research to brief the team, helping define the consumer target and get all the consumer insights and need states out.
  • List out all the features that your brand offers, and the brand assets it brings to the table. Make sure that these features are competitive advantages.
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over “so if I’m the consumer, what do I get from that?”. Ask up to 5 times and push the answers into a richer zone.
  • Then find the emotional benefit by asking “so how does that make me feel?” As you did above, keep asking, and you’ll begin to see a deeper emotional space you can play in and own.

Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet.

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Emotional Benefits

From my experience, Marketers are better at the rational benefits than they are at the emotional benefits. I swear every brand out there thinks their brand should be the trusted, reliable and yet like-able brand. As a brand, you want to own the emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz We have taken this research method and created an Emotional Cheat Sheet for Brand Leaders. This lists out the 8 major emotional consumer zones, optimism, freedom, being noticed, being liked, comfort, be myself, be in control and knowledge.

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To own a space in the consumer’s heart, you want to own and dominate one of zones, always thinking relation to what your competitor may own. Do not choose a list of emotions from all over the map, or you will just confuse your consumer as much as trying to own a long list of rational benefits. Once you narrow the major emotional zone you can own, you can use the supporting words of the Emotional Cheat Sheet to add flavor. Benefits sell and features tell. Stop telling consumers what you do and start telling them what they get and how it will make them feel.

Reasons to Believe (RTB’s)

If we borrow from a classic logic technique below, they teach you to one conclusion and two premise. I took one logic class at University and sat there for 13 straight weeks of premise-premise conclusion. Easy class, but the lesson has stuck with me:

  • All fish live in water (premise)
  • Tuna are fish (premise)
  • Therefore, tuna live in the water (conclusion)

In a positioning statement, the brand benefit would be the conclusion. And the Reason to Believe (RTB) would be the supporting premise. I say this for a few reasons. First, the RTB should never be the conclusion. The consumer doesn’t care about what you do, until they get something from it. The benefit has to come from the consumers’ shoes. Second, if pure logic teaches two premises are enough to draw any conclusion, then you really only need two RTBs. Brands with a laundry list of RTBs are not doing their job in making a decision on what the best support points are. You either force the ad agency to decide what are the most important or the consumer to decide. By deferring, you’re weakening your argument.

Claims can be an effective tool in helping to support your Reason to believe. We look at four types of claims: process, product, third person and behavioral.

Process

  • Detail how your product works differently
  • Showcase your point of difference in the production process.
  • What do you do differently within the production process
  • What added service/details do you provide in the value chain

Product

  • Usage of an ingredient that makes you bette
  • Process or ingredient that makes you safer

Third person

  • Experts in the field who can speak on the brand’s behalf.
  • Past users/clients with proof support of their stories.

Behavioral

  • Clinical tests
  • In market usage study
  • Before and after studies

This is what it looks like when you put them into this format:

For more information on Brand Positioning statements, follow this step by step process in this link: How to Write a Brand Positioning Statement

 

Turning the work into a Brand Concept

Creating the Big Idea: To ensure we have an idea that is big enough to guide every part of the organization, we start by describing the brand as to the products and services that we sell and matches that up to the external brand reputation among consumers. We describe what internal beacons are within the brand that would help guide the entire internal brand culture and organization that supports the brand as well as the brand character as it touches consumers. We would also describe the role of the brand, about how it connects the brand with consumers, the link between the internal soul and the external reputation.

The Big Idea Blueprint below shows everything that must be considered for creating the Big Idea.

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Looking at the example below, taking the information from the concept from above using Gray’s Cookies, here’s how to map it into a concept.

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  • Main headline should capture the big idea of your brand.  Obviously the headline is the first thing they see, so it should contain the big idea that you want your brand to stand behind.
  • Use the opening to connect quickly with your target consumers by starting with their enemy or insight. I love using the enemy because it can be a very arresting way to really make the consumer say “That’s me”.
  • Bring the main benefit to life in a compelling promise statement. I prefer it to have an emotional/rational balance in the promise. At the very least, the emotion modifies the rational. The promise statement then forces us to bring in the two reasons to believe to help back that up.
  • I like to add a motivating call to action at the end to help prompt purchase intent. The concept test will hang on how well the purchase intent score is, so a strong concept almost has to ask for it.
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Anything more than this, you are just cheating yourself. Yes, you might have a better score, but you might not be able to execute it in the market. If you haven’t narrowed down your claims or RTB’s, maybe you need a claim sorting research before you get into the concept testing.

While this helps with HOW to write a concept, ask Beloved Brands how we can help really bring the concepts to life with a workshop with your team as well as writing of the final concept options.  We promise to bring magic to the concept which will help get you into the right positioning.

For a presentation on how to write a Positioning Statement, follow:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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Ritz-Carlton: Meeting the “unexpressed” needs of guests

Posted on 2 CommentsPosted in Beloved Brands in the Market

 

 

Impeccable service separates Ritz-Carlton

Ritz-Carlton does a lot of things right to earn the high prices they are able to charge–the best locations, beautiful rooms, nice beds and great meals. But in reality, every luxury hotel has to deliver against these or they’ll be quickly out of business. Recognizing that any great brand has to be better, different or cheaper to win, Ritz-Carlton focuses their attention on impeccable service standards to separate themselves from other Hotels. What Ritz-Carlton has done so well is operationalize it so that culture and brand are one.RitzCarlton.svg

I was lucky enough to be able to attend the Ritz-Carlton Training session, and as a Brand Leader, the thing that struck me was the idea of meeting the “unexpressed” needs of guests. As highly paid Marketers, even with mounds of research, we still struggle to figure out what our consumers want, yet Ritz-Carlton has created a culture where bartenders, bellhops and front desk clerks instinctively meet these “unexpressed needs”. Employees carry around note pads and record the expressed and unexpressed needs of every guest and then they use their instincts to try to surprise and delight these guests.

Employees are fully empowered to create unique, memorable and personal experiences for our guests. Unique means doing something that helps to separate Ritz-Carlton from other hotels, memorable forces the staff to do something that truly stands out. And personal is defined as people doing things for other people. Isn’t that what marketers do? So what’s getting in our way?

They bake it right into the Ritz-Carlton culture

The phrase that Ritz-Carlton uses with their staff is “Radar is on and Antenna is Up” so that everyone can be looking for the unexpressed needs. These could be small wins that delight consumers in a big way:

  • A couple arrives at the hotel, wife is six months pregnant. Normal service would be to observe and do nothing–at best help with the bags. But at Ritz-Carlton, antenna up means they get a special pillow for sleeping and alcohol free sparkling cider instead of champagne.
  • A business guest who was staying at a hotel for 4 weeks and the staff printed up business cards with the guest name, hotel address and phone number so that he could give them out during his stay.

But like any hotel, things do go wrong. The staff is encouraged to use these moments to not only address the problem and fix it but also try to surprise and delight guests turning a problem into a potential wow moment. With everyone’s antenna’s up, when a problem does arise they quickly brainstorm and use everyone’s input.

  • A guest who had just left the hotel called to say that their son had left his stuffed giraffe in the room. The boy could not stop crying.2012-05-17-Joshiepic5 The only thing these distraught parents could think of to tell their son, is that the giraffe was staying on the vacation a little longer. So the staff, found the giraffe and overnighted it to the boy. Most luxury hotels would have done that. But that was not enough for Ritz-Carlton. Knowing what the Mom had told their son about staying on a bit longer, the staff also included a photo album of the giraffe enjoying his extra stay, including photos of the giraffe sitting by the pool, in the spa with cucumbers on his eyes, and laying out on the beach. It’s not that the album would make the boy excited, because he was excited just to have his favorite giraffe back. But imagine how the parents felt and the signal it sends to them about the Ritz-Carlton staff and how many friends they may share that story with.
  • An activity coordinator noticed that one of them had a real passion for ballet. Over the week, the activity coordinator even came in before her shift every day to give the girl a private ballet class. She wanted to do something special for the young guest, and decided to teach her a special dance for her parents. On their last day, she arranged for a performance at the Jazz Club, with special music and lighting for the performance. The couple was very grateful and could not believe how much love and passion the activity coordinator had put into making their daughter’s stay so memorable. To complete the experience, they gave the guests a CD with pictures and videos of their daughter’s performance so they could share it with family and friends on their return home

To inspire each other, everyone at Ritz-Carlton goes through a daily line up where they share wow stories, both local stories and stories from other hotels around the world. This line up keeps everyone in line, but it also keeps people fully engaged. Harvard did a study on Employee Engagement, stating that the average company had 29% of their employees who were fully engaged and they labelled this group as the Super Stars. Using the same criteria, Ritz-Carlton has 92% of their staff considered fully engaged. No wonder they are able to win so many service awards and no wonder they can create such an experience for their consumers. They’ve fully created a culture that now defines the brand.

So what can brand leaders learn from Ritz-Carlton?

  1. How can marketers challenge themselves to meet the unexpressed needs of guests? As Henry Ford said: “If I had asked people what they wanted, they would have said faster horses.” So what’s getting in your way? Are you over-thinking things? Are you too worried about the short-term results that you’re not even seeing or hearing the unexpressed needs? Are you so analytical that you need to see the data first and never really reach for your instincts which might challenge the data or even fill in the missing gaps in the data?0da472d
  2. How do you get your antenna’s up so that you and your team are always watching, listening and thinking? As you run from meeting to meeting, filling in forecasting templates and spending evenings pretty-ing up your presentation for senior leaders, how many times a week do you talk to consumers, how many times do you walk into a store or what social media tools do you monitor and listen to. Do you ever sit with customer service for an afternoon? Do you read through the complaints? And while it’s great that you do this once in a while, how do you operationalize it with your team. Can you set aside time so that you’re doing regular store visits or a quick brainstorm on observations once a week.
  3. How can Marketers push ourselves to wow the Consumer? The Ritz-Carlton staff is constantly trying to wow their guests, in either a small or big way believing that both make a difference. Are you pushing yourself to surprise your consumer? Are you trying to wow your consumer? Are you rejecting OK work to force everyone to reach for Great? Do you have a standard for the work that exceeds that of your consumer, after all if you don’t love the work then how do you expect your consumer to love your brand?

Do something this week that meets the unexpressed needs of a Customer just to see what it feels like. It might feel pretty damn powerful.

 

To read about how to create a Beloved Brand, click on the presentation below:

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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10 Ads that will definitely leave you with goose bumps (get some tissues ready)

Posted on 2 CommentsPosted in Beloved Brands in the Market

goosebumps-101027-02When clients say they want emotional advertising, I usually say “I can’t wait to see this emotional brief you wrote”. Without understanding the emotional space you wish to own in your consumer’s heart, asking for an emotional ad, feels like a random game of chance.

Here are ten ads that do a fantastic job going into the emotional space, whether it’s a mass retailer, a utility or a shoe company. They do a nice job trying to connect the consumer tightly to the brand. While the ads do that, does the brand do what it takes to back it up when you experience that brand? In some cases, but not all.

Google “Paris”

For all the romantics, this is one of the best ads. They tell the complete story through google searches, with a few surprises like the airline ticket, wedding bells and of course the baby. Extremely creative.

 

Nike’s “If You Let Me Play”

Nike released this inspiration way back in 1995, outlining the benefits of having girls play sports. Brands such as Always “throw like a girl” were inspired by this type of message.

 

P&G “Thank you mom”

Back in the 2012 London Olympics, P&G was making an attempt at a Master Brand strategy. This is a beautiful ad, that is a nice salute to moms around the world, whether your child is an Olympian, or not.

 

Ram “Farmer’s”

Aired during the Super Bowl, it’s one of the best spots I have ever seen. Using Paul Harvey’s story telling hit a positive vibe with Farmers, and Americans in general. Simplicity of idea, yet story telling at it’s best.  They didn’t over-do the branding, but consumers were so engaged in the ad, they were dying to know who is it that’s telling this story. While everyone else is being loud, maybe being so quiet stands out. 

 

 Canadian Tire “Bike Ad”

This ad makes me cry every time. We can all remember our first bike and how special it is. In Canada, Canadian Tire was that store, prior to Wal-Mart entering the market. Now, Canadian Tire can’t deliver on this promise, because it now resembles Wal-Mart. No longer is it where you go for your first bike, but rather where you go buy Tide when it’s cheap.

 

Bell “Dieppe”

Wow, a utility delivering an ad that gives you goosebumps. I have been to that beach in Dieppe and it does command such intense feelings. As you can tell from the phone at the end, this was in the early days of Cell phones, trying to link the idea of connecting anywhere. While this is just an ad, I do wish that utilities would try harder to connect with consumers at every stage of the consumer’s buying journey.  

 

John Lewis “Christmas 2011”

Every Christmas, British retailer John Lewis has been releasing campaigns around Christmas.  To me, this one is the best, especially the ending. John Lewis is an employee-owned retailer, with a very unique culture that delivers on the brand.  

 

Budweiser “9/11”

Aired only once, only a few months after 9/11 the context of this ad is paramount to the emotion. An amazing salute, by the brand, to the heroes of 9/11.

 

Pfizer “More than Medication”

A nice twist. The ad appears to be a typical rebellious teenager, but he turns into an angel, with a big message for his sister.

 

Nike “Find your Greatness”:

Aired during the 2012 Olympics, this ad was very high risk, but also ran counter to all the athlete ads. There are many types of motivation, for some of us, Michael Jordan is the inspiration. But not all of us are Michael Jordan. This kid running is the average person that gets out there and makes it happen.My hope is that it inspires you do get out there and “just do it”, on your own terms.

 

To see a training presentation on getting Better Marketing Execution, click on the link below

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

Positioning 2016.112

 

10 ways to build an exceptional Customer Experience, just by saying “stop it” to these brand killers

Posted on 1 CommentPosted in Beloved Brands Explained

 

 

There is only one source of revenue: Your Customers!!!

The most Beloved Brands create a brand experience that lives up to even over-delivers against the brand’s promise. I always like to remind myself that the customer is the most selfish animal on the planet, and deservedly so, because they have given you their hard-earned money. Brand Leaders are always fixated on driving demand to increase share and sales. Yet they usually only reach for marketing tactics like advertising, special promotion or new products. Many tend to forget about creating exceptional customer experiences. It takes years to get customers to change their behavior and move away from their favorite brand and try yours. Yet it takes seconds of bad service for you to lose a customer for life.

Do you treat those who love your brand better than you treat other customers?  You should. You can never lose their love, and then you have to find ways to use that love to get them to influence others in their network.

As we map out how consumers buy and experience brands, we have created 5 main consumer touch-points that will impact their decisions on whether to engage, buy, experience and become a fan. Our five consumer touch-points we use are:

  1. Brand Promise: Brands need to create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper.
  2. Brand Story: Use your brand story to motivate consumers to think, feel or act, while beginning to own a reputation in the mind and hearts of consumers.
  3. Innovation: Fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise.
  4. Purchase Moment: The moment of truth as consumers move through the purchase cycle and use channels, messaging, processes to make the final decision.
  5. Brand Experience: Turn the usage of your product into an experience that becomes a ritual and favorite part of their day.
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Here are the 10 customer experience things that you should STOP DOING:

#1: Stop it with the attitude of “I’m in shirts not ties”.

It can be extremely frustrating walking up to an employee of a store who has no clue about anything but their own little world. And even worse when they just point and say “go over there”. The better service is those who take the extra step by jumping in and helping and those know what’s going on in every part of the brand–not just their own world.Stop Try asking someone at Whole Foods where something is and they will walk you right over to the product you’re asking about and ask if you need anything else.

#2: Stop it when you make the customer do the work.

The airlines have been shifting all their work over to customers for years–boarding pass, bag tag and now even lifting your suitcase up onto the conveyor belt. While it might help you control your costs in the short-term, you’ll never be a Beloved Brand and you’ll never be able to charge a premium price for your services. Instead, in a highly price competitive marketplace, you just end up passing those cost savings onto to the customer in lower prices. No wonder most airlines are going bankrupt.

#3: Stop it when you feel compelled to bring up the fine print when dealing with a customer problem.

A year ago, I had a problem with a laptop I bought, but I felt extra confident because I had paid extra money to get the TOTAL service plan. Yet with my first problem with the laptop, I was told the TOTAL service plan did not include hardware,software, water damage or physical damage. 1e1d5d079e23366d1149ea834ce8102f62d562519d45930ae0c0fb1b485ffff7Are you kidding me? With a computer, what else is there? As a consumer, I had gone through the brand funnel–from consideration to purchase–and made a choice to buy your brand. Yet, at the first sign of my frustration with your brand you are deciding to say to me “don’t come back.” I had a problem with my iPhone and returned it to the Apple store. They went into the back room and got a new iPhone for me and said “would you like us to transfer all your songs over?” I was stunned. Apple took a problem and turned me into a happy customer who wanted to spend even more money with them.

#4: Stop it when you send a phone call to an answering machine.

We’ve all experienced this and secretly many of us have done this. Now if you know you’re going to get a machine ask the customer: “is it OK if you get their machine”. But willingly sending a caller into a machine is just plain lazy and it says you just don’t care. Treat them with the respect that a paying customer has earned with you and make sure there is a human on the other line.

#5: Stop it with processes that make it look like you’ve never been a customer before.

While brand leaders tend to think they own the strategy and advertising, it is equally important that you also own the customer experience. While the positive view of the purchase process is driven by a brand funnel, you should also use a “Leaky Bucket” analysis to understand where and why you are losing customers. It is hard work to get a customer into your brand funnel, it is great discipline to move them through that brand funnel by ensuring that every stage is set up to make it easy for the customer to keep giving you money. Step into the shoes of your customers and experience the brand through their eyes on a regular basis so you can effectively manage the experience. You should always be shopping your own category, just to see how it is to buy your brand. When you find leaks to the brand funnel, find ways to close them so you can hang on to the customers you’ve worked so hard to get into the doors.

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#6: Stop it with trying to win every customer interaction.

This past Christmas I was lucky enough to be 34th in the return line at Best Buy. For some reason they put the most angry person they could find to manage the returns line. I suppose it lowers their return budget, but it also drives away customers. With every customer, this guy was hell-bent on trying to break the customer’s spirit so they’d avoid returning the product. As I watched, I felt like I was headed into a police interrogation. On the other hand, if you want to see a comfortable returns policy, try returning something at Costco. They take the stance that they are on the side of their “members” and help you go up against the big bad manufacturers. If you don’t have your receipt, they’ll print it out for you. At Costco, the returns process is where they earn that $50-100 membership price. Just maybe you should start treating your customers like members and see if it forces you to see things differently.

#7: Stop it when you are explaining your problems instead of listening to the customer’s problems.

When a place is completely messed up, some workers feel compelled to tell you how stupid they think this is. Unfortunately, this constantly complaining ‘why me’ attitude can quickly become systemic and contagious within the culture. It takes an effort to turn the culture around. The best way is to create service values, driving process that helps reward good service, and driving personal accountability within everyone. Then reward behavior that matches up to the service values.

#8: Stop it with the hollow apologies that seems like you are reading from a manual.

No one wants to deal with people who just feel like they are going through the motions. It’s crucial that you set up a culture that is filled with authentic people who have a true passion for customers. TD Bank retail staff does an exceptional job in being real with customers. When you consider that they hire from the same pool of talent as all the other banks, it’s obviously the culture of caring about their customers that really makes the difference in separating their customer experience from others.

#9: Stop it when you try using my complaint call as a chance to up-sell me. The only up-sell is to get me to come back again.

Last month, I had an issue with my internet being way too slow. When I called my local service provider, instead of addressing how bad their current service was, the first response was to try selling me a better service plan that with a higher monthly fee and a higher priced modem. Then suddenly, they tried to sell me a home security system. If a customer is a point of frustration, why would they want to pay you even more money for a bad service. You haven’t earned my business. The best in class service is the Ritz Carlton who proactively look to turn customer problems into a chance to WOW the customer. It’s built right into the culture as employees are encouraged to brainstorm solutions and empowered with up to $2,000. Instead of up-selling, the Ritz spends the extra effort to ensure you’re satisfied with the service you’ve already paid for.

#10: Stop it when it just becomes a job for you and you forget the passion you have for the business.

When your team starts to feel like they have no power, they just start to show up as pencil-pushing bureaucrats. There’s no passion left–as it’s been sucked out by a culture with a complacent attitude and a bunch of check in-check out types who follow the job description and never do anything beyond it.  Ask yourself “why do you come to work” and if the answer doesn’t show up in your work, then you know that the culture needs a complete overhaul. If you don’t love the work, then how do you expect your customer to love the brand?  

The best Marketers manage their brand culture

Beloved Brands create an exceptional customer experience. They know it’s not just about advertising and innovation. As a consumer, I’ve become spoiled by the best of the brands who raise the bar and continue to surprise and delight me. Think of how special you feel when you are dealing with Disney, Starbucks and Apple. Compare that to how demoralized you feel when dealing with the airlines, utilities and electronics shops. For the Beloved Brands, they understand that Culture and Brand are One. The Brand becomes an internal beacon for the culture—and the brand’s people have to genuinely be the strongest most outspoken fans who spread the brand’s virtues.keep-calm-and-stop-it-stupid.jpg

As you look at your own customer experience, take a walk in your customers shoes and see where your customer would rate you. Are they with you because they love you and want to be with you or because they have to be with you? Even though they like the product, they may feel indifferent to your brand. And they’ll be gone at the first chance at an alternative. And as a brand leader, your brand is likely stuck on a rational promise, unable to separate yourself from competitors and instead you are left competing on price and promotion.

  • Begin by holding the culture up the lens of the brand’s Big Idea and ensure the right team in place to deliver against the needs of the brand.
  • Start finding ways to create a culture that is more consumer centric (customer first)
  • Begin to push the culture to create a unique delivery of the product experience. Use Leaky Bucket analysis to take a walk in your customers shoes and to discuss weaknesses.
  • Set up forums for innovation—that create an energy through the culture and one that starts to take risks on the best ideas.
  • Use a purpose driven vision, with a set of beliefs and values to challenge the team to create and deliver that experience.
  • Reward the behaviors that match up to your values, with both rewards and recognition. Creating a culture of wow stories motivates all employees to seek potential wow moments they can deliver.
  • Begin using power of a loved brand to attract and keep the best. Find fans of the brand who will become your front line spokespeople. They bring that passion for the brand.

Here’s our workshop presentation on “Creating a Beloved Brand”.

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands

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Use a Consumer Benefits Ladder to focus your brand message

Posted on Leave a commentPosted in How to Guide for Marketers

One of the biggest flaws I see Marketers making is when their brand communication talks about what their brand does instead of what the consumer gets. They mistakenly try to jam in as many brand messages as possible, with a strange belief that if we say A LOT to a busy consumer mind, they will at least hear something. Not true. When you say a lot, nothing gets through.

In a Marketing role, it is easy to get fixated on your own brand. I’ve been there. All day long, you talk about you brand. Every meeting is about your brand. You present to management about your brand. You wake up and go to bed thinking about your brand. Also, your brand pays you. Keep in mind, there is only one source of revenue, and that’s your consumer.

The best Brand Leaders are fixated on their consumer, not their brand. 

I always like to ask Brand Leaders: “Do you represent your brand to your consumer or do you represent your consumer to the brand?” Yes, I get stunned looks of confusion when I ask that. But it’s an important question as to your mindset of how you do your job. My challenge to you is to start thinking like your consumer and be their representative to your brand. You’ll notice the work gets better, you’ll see clearer paths to growth and you’ll start to create a brand that the consumer loves rather than just likes. When this happens, sales go up and the P&L spits out higher profitability. Because the more loved the brand, the more powerful position it occupies and the more profit it can generate from that source of power.

The Consumer Benefits Ladder

We use a Consumer Benefits Ladder that starts with the consumer, defining the target adding the consumer enemy and insights to help add flavor about your consumer. We then outline the key features of your brand (what you do), then ladder up to the rational benefits (as a consumer “what do I get?”) and then ladder up to the emotional benefits (as a consumer “how does this make me feel?”)

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The ladder forces the Brand Leader to think about consumer benefits, instead of features. The Consumer Benefits Ladder helps you brainstorm possible messages that you may test with consumers. It can help organize the possible brand messages or it can be a decision-making tool as you begin focusing on the most important, compelling brand messages. This will help set your brand up with a unique, own-able, motivating brand positioning statement.

Who is your consumer target?

What do consumers want? Everything starts and ends with the Consumer in mind. Spreading your limited resources across an entire population is cost-prohibitive with low return on investment and low return on effort. While targeting everyone “just in case” might feel safe at first, it’s actually less safe because you never get to see the full impact. Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. It becomes all about choices and you will be much more effective at convincing a segment of the population to choose your brand because of the assets and promise that you have that match up perfectly to what they want. Great brands don’t go after consumers, great brands get consumers to go after the brand. The best way to get consumers motivated is to tap into their need states, by understanding what frustration points they may have. We call these consumer enemies. While products solve regular problems, beloved brands beat down the enemies that torment us every day. What are your consumer’s frustration point that they feel no one is even addressing? To paint the picture of our consumer target, you should use Consumer Insights to help to crystallize and bring to life the consumer you are targeting. The dictionary definition of the word Insight is “seeing below the surface”. Too many people think data, trends and facts are insights. Positioning 2016.026Facts are merely on the surface—so they miss out on the depth–you need to bring those facts to life by going below the surface and transforming the facts into insights. Insight is something that everyone already knows and comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”. That’s why we laugh when we see insight projected with humor, why we get goose bumps when insight is projected with inspiration and why we cry when the insight comes alive through real-life drama. When Consumer Insights are done right, we get in the shoes of the consumer by starting the insight with the word “I” and we use the voice of the consumer by putting the insight in quotes. As part of the positioning exercise, we recommend that you put together a complete Consumer Profile that outlines the focused definition of the target, add flavor with needs, enemies and insights and then talk about where they are now and where you’d like to move the consumer in the future.

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Brand Features

What does your brand do? As you start looking at your own brand, you should look at four types of key features to see if there is a starting point for your story. Here are some questions that will help your brainstorming:

Product/Service

  • Is there something natural in your product that you can take advantage of, that makes you show up to your consumer in a way that is better or different than your competition?
  • What are the specific performance indicators that you brand is better? (e.g.  faster, longer-lasting, stronger, more consistent, easier/simpler, healthier)
  • Is there a specific ingredient (or lack of ingredient) or a specific process that would make your product better than your competition?
  • Is there an experience or service that comes from your product that makes you show up to consumers as either better or different than your competition?
  • Do you have any specific innovations and creativity that may help your product show up better or different than your competition?

Process

  • Detail how your product works differently and how that shows up to the consumer.
  • Showcase your point of difference in the production process that could make you better/different than your competition.
  • What do you do differently than your competitor within the production process?
  • What added service/details do you provide in the value chain

Third person

  • Do you have any consumer evidence (ratings, rankings, consumer satisfaction, awards) that could support a key feature?
  • Are there any stories from consumers, that  set up support for a key feature?
  • Is there any expert in the field who can speak on the brand’s behalf?

Behavioral

  • Any clinical test results or in-market usage results that could support your brand features.
  • In-Market sales, share, growth results that would support brand strength, power or momentum.
  • Any evidence in brand funnel scores (highest loyalty) that would support brand features.
  • Before and after studies

Benefits

What do consumers get? (Rational Benefits) For each feature you list, you want to put yourself in the shoes of the consumer and ask “so what do I get?”  If your brand works faster, then consumers can get on with their day. If your brand is low calorie, then it’s easier of consumers to lose weight. The challenge here is to ensure that each benefit you stand behind makes you show up as better, different or cheaper than your competitors. Looking at the venn diagram, you have to begin finding the zone where you are meeting the consumers needs and doing it better than any competitor. You can see the two zones to avoid: the losing zone is where you try to play in the space where your competitor is better than you, and the dumb zone where your consumer just does not even care. The dumb zone can be avoided by using this consumer benefits ladder process.

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How do consumers feel? (Emotional Benefits) From my experience, Marketers are better at the rational benefits than they are at the emotional benefits. I swear every brand out there thinks their brand should be the trusted, reliable and yet like-able brand. It seems Marketers want “emotional advertising” but that has to start with an emotional brief. As a brand, you want to own the emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz We have taken this research method and created an Emotional Cheat Sheet for Brand Leaders. This lists out the 8 major emotional consumer zones, optimism, freedom, being noticed, being liked, comfort, be myself, be in control and knowledge.

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To own a space in the consumer’s heart, you want to own and dominate one of zones, always thinking relation to what your competitor may own. Do not choose a list of emotions from all over the map, or you will just confuse your consumer as much as trying to own a long list of rational benefits. Once you narrow the major emotional zone you can own, you can use the supporting words of the Emotional Cheat Sheet to add flavor.

Features tell. But Benefits sell.

Stop telling consumers what you do and start telling them what they get and how it will make them feel.

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Worksheet Example

The best way to work the Consumer Benefits Ladder is to hold a brainstorming session with everyone who works on the brand so you can:

  • Leverage all the available research to brief the team, helping define the consumer target and get all the consumer insights and need states out.
  • List out all the features that your brand offers, and the brand assets it brings to the table. Make sure that these features are competitive advantages.
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over “so if I’m the consumer, what do I get from that?”. Ask up to 5 times and push the answers into a richer zone.
  • Then find the emotional benefit by asking “so how does that make me feel?” As you did above, keep asking, and you’ll begin to see a deeper emotional space you can play in and own.

Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet.

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At Beloved Brands, we lead workshops to help teams build their Creative Brief, helping the team find the target, main benefits, reason to believe.  Click on the Powerpoint file below to view:

We run workshops that help Brand teams make better decisions on the way to smarter action plans

We are big believers in the workshop process. We think it’s the best way to get the decision makers in the room, push for alignment, make decisions and drive the team towards action. The most noticeable point of difference we offer is that we will challenge you with new ideas to get your brand and your team in a better position for future growth. As the facilitator, I bring my executive experience into the room, ready to challenge the thinking and pushing for better answers. It’s like having another VP Marketing in the room.

While anyone can recommend a strategy, we recommend a realistic strategy that drives towards action. Quite frankly, I’m not big on consultants that just bring in big presentations that just sit on the shelf and never make it to the market. They cost a lot, take a long time, and in general they are written by consultants that have never run a business. Even Ad Agencies can recommend strategy, but they usually bring an agency bias and just give strategies that set up work they want to make–whether it drives growth for your business or not. I’ve run many businesses and I understand the pressure you’re facing on driving growth.

My personal promise to you is that I will get your brand in a better position for future growth

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Is the Bose brand considered high quality or low quality?

Posted on Leave a commentPosted in Beloved Brands in the Market

 

bose-logo-vectorAmong the masses, Bose is one of the most respected, trusted and beloved brands when it comes to audio speakers and headphones.  That’s what their core target market would say. But to serious Audiophiles, with a discerning ear, Bose is total crap, with inferior technology, shabby production standards and resulting poor value. This might be the equivalent about asking a Foodie what they think of Morton’s Steakhouse or Ruth’s Chris.

Bose has a great word of mouth reputation. I remember when I first heard of Bose, it was a guy at work, who seemed to know more than I did say definitively “Bose are the best speakers you can buy”. I immediately believed this to be true and have felt that way ever since. I proudly own Bose headphones, a Bose docking station and Bose speakers in my car. I am a highly satisfied Bose fan.

I wanted Bose Speakers for my TV, having drooled over the idea for years. So I went into a Bose store, listened to a few different options and they all sounded amazing. So I looked on the Bose box, and there was no mention of Watts at all or really anything. My first thought was “wow, Bose is just such a great brand, they don’t really need to get into those tiny details like watts”. But I wanted to compare brands just to ensure I was spending good money. So I went on-line and here’s the Bose specs: still nothing.

 

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That brings us to The Bose philosophy: Unlike other audio product manufacturers, Bose does not publish specifications relating to the measured electrical and objective acoustic performance of its products. This reluctance to publish information links back to the classic Amar Bose paper presented in 1968 “On the Design, Measurement and Evaluation of Loudspeakers”. In the paper, Bose rejects these measurements in favor of “more meaningful measurement and evaluation procedures”, and considers the human experience the best measure of performance.

For Bose, sound is an experience, not a statistic. Bose spends all their effort and dollars on perfecting the in-store sound demo so they can show off Bose’s great sound quality and let consumers be the judge of their sound.  And yet it’s arguably tough for the average ear to distinguish. Bose invests a lot of money into their own retail stores as well as the store-in-store concepts. That way, it can control the experience the consumer gets with its products–ensuring the consumers hear Bose at it’s best.

Bose has figured out how to make their brand work to their advantage–the proof is in the sound you hear in the store. There’s a certain magic that happens in store when listening to the Bose stereo system. Despite what Audiophiles say, consumer feedback from the masses is definitively in favour of Bose with very high scores. And in a most recent poll, Bose is the #3 trusted brand in Consumer Electronics, so they must be doing something right. It’s tough for consumers to separate Product from Brand, even a brand like Apple has had success in this confusion where consumers think Apple has “great products”. To the masses, Bose is a great brand and has great products.

Is Bose a beloved or hated brand? You be the judge.  

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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The 10 most abused words by Marketers

Posted on 6 CommentsPosted in How to Guide for Marketers

 

On a daily basis I hear Marketing buzz words bantered about and it becomes obvious people say them and don’t really even know what they mean. I think people use the sacred marketing words like relevant, equity or insights, because they figure no one will challenge them. Of course, everyone puts “strategic thinker” on their Linked In profile. The problem I see is that a generation of Brand Leaders have not been properly trained and it’s starting to show. For the past 20 years, companies have said “on the job” training is good enough. But now the lack of training is starting to show up. The mis-use of these words can be linked to the lack of understanding of the fundamentals of marketing.

 

Here are the 10 words mis-used and even abused by Marketers.

 

1. Relevant

When I was running the marketing department at J&J, I jokingly banned this word “relevant” because it was so abused. I found that when a marketer would say “we need to make sure it’s relevant”, the room would go silent. Then there’s a pause and someone would add their own brilliance “yeah, we have to be relevant”. The room went silent again. So then I would usually ask a simple question “so what do you mean relevant?” and sadly that question seemed to stump most of my marketers. Relevant has become the marketing equivalent of the word “nice”, because people say it so much now, they have no clue what they mean by it. My mom and my new iPhone speakers are both “nice”. Yes, of course, marketing should be relevant. But what exactly do YOU mean when YOU say the word relevant? When you answer the question, you likely just wrote down something better. So use that instead of just blindly saying “we need to be relevant”.

2. Awareness

Just like the word relevant, you’re just forcing me to ask, “so when we get awareness, what do we get then”. Once you spend money, you should be able to get awareness–it’s just a question of how much money you spend. Jeb Bush just spent $130 Million–everyone knew he was running. No one voted for him and his awareness did very little for him. In brand terms, we don’t make any money from awareness–we only begin to make money as we are able to move our consumer through the consideration-search-purchase stage.  So, let’s save the word “Awareness” for the lazy brains.

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3. Brand equity

The term was first coined in the 1980s, as part of the RJR Nabisco take-over when they couldn’t explain why they were willing to pay a higher price than the pure book value of the assets. The word has strayed since in two different directions–those like Brand Finance and Interbrand who still use it to correctly attribute it to the VALUE of the brand and those who mis-use the word when they attribute to the HEALTH of the brand. Where it gets abused is when it has become  a catch-all statement for the “unexplainable”. They’ll say “the final scene of the TV ad is really emotional and should really drive the equity of this brand”. We look at Brand Health and Brand Wealth separately and then use the model to predict future success of the brand. As Brand Leaders, it’s actually important to keep them separate so that the actions you take hit the right spot on keeping your brand healthy and wealthy. But Brand Equity is about the wealth side, linked to Value.

There are 8 ways to drive Brand Wealth: premium pricing, trading the consumer up or down, reducing both product costs and marketing costs, stealing other users or getting current users to use more, entering new categories and creating new uses for your brand. Those are not ambiguous at all.

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4. Target market

I’m in shock at how Marketers list out their target market on the creative brief. I once read a brief with a target that said “aged 18-65, new customers, current customers and even employees”. That pretty much covers everyone but prisoners and tourists. A well-defined target should be a combination of demographics (age, income level, male/female) and psychographics (attitude, beliefs and behaviors). I actually try to put an age demographic on every brief. Call me old-fashioned or just realistic. The media you buy, the talent you put in the ad, the stores you choose to sell to, or even the claims you make are likely going to have an age component, so you’re just kiddng yourself by saying “we are more about psychographics than demographics”. When it comes to age, I try to push for a maximum of a 5 year gap. This doesn’t mean you won’t sell to people outside of this target, but it does help give focus to you.

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5. Alienate

This word drives me bonkers and it seems to be growing or at least I keep hearing it. The best brands have focus, the worst don’t. The best marketing programs also have focus, and the worst don’t. If you want to be a great marketer, you must have focus–defined target, positioning, strategies and  execution. Stop being worried and cautious that you alienate older consumers or your current consumers, that you water down your marketing programs to a degree that we have no clue who you’re talking to or what you’re even saying. As long as you are staying consistent and true to the brand, no one should be alienated by what you have to say and who you say it to.

6. Benefits

There’s an old selling expression: “features tell and benefits sell”. But I’m seeing that Marketers have become so obsessed with shouting their message as loud as they can, most brand communication is wall-to-wall claims about how great you are. Brand Leaders should be organizing their Customer Value Proposition into rational and emotional benefits. What I recommend you do is list out the brand features and put yourself in the shoes of your consumer and ask “what do I get?” (for rational benefits) and “how does that make me feel?” (for the emotional benefits). Your brand’s communication should be a combination of the two.

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7. Brief

It’s called a brief, because it’s…BRIEF.  I saw a creative brief last year that was 8 pages long. And even that length, I couldn’t find one benefit or one consumer insight. Every brief should be one page maximum. I’ve done a 1000 briefs at this point, and it is pretty easy to nail the one page brief.

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8. Brand

Too many companies have now separate Brand from Product marketing, especially on the Master Brand type companies. The “Brand” department handles PR, brand advertising, websites and events. The “product” department handles new products, pricing, distribution, and product-oriented or promotion-oriented advertising. Brand and Product should NEVER be separated. It’s crazy. Our definition of a brand: “A Brand is a unique idea, perceived in the minds and hearts of the consumer, consistently delivered by the experience, creating a bond, power and profit, beyond what the product itself could achieve.” To have a successful brand, you need to connect with consumers based on a BIG IDEA for your brand and then line up the 5 connectors (promise, story, innovation, purchase moment and experience)

 

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9. New Media

New Media has been around 15-20 years old now. I’m not sure I hear the term “new media” on Mad Men when they talk TV ads, but that’s how crazy it sounds at this point. A better way to look at today’s Media is to manage all 5 types: Paid, Earned, Search, Social and Home media. Paid is what we think of the traditional media (TV, Print, OOH, Radio and Digital options). With EARNED media, you need to create and manage the news cycle with mainstream news, expert reviews and blogs. SEARCH Engine Optimization balances earned, key words and paid search. SOCIAL is about engaging users where they are expressing themselves through sharing and influencing. HOME media is where you host your website where you can use as a source of information, influence or even closing the sale.

10. Strategic

To me, the difference between a strategic thinker and a non-strategic thinker is whether you see questions first or answers first. Strategic Thinkers see “what if” questions before they see solutions. They map out a range of decision trees that intersect and connect by imagining how events will play out. They reflect and plan before they act. They are thinkers and planning who can see connections. Non Strategic Thinkers see answers before questions. They get to answers quickly, and will get frustrated in the delays of thinking. They think doing something is better than doing nothing at all. They opt for action over thinking. They are impulsive and doers who see tasks. They are frustrated by strategic thinkers. But to be a great marketer, you must be a bit of a chameleon. While pure strategy people make great consultants, I wouldn’t want them running my brand. They’d keep analyzing things to death, without ever taking action. And while tactical people get stuff done, it might not be the stuff we need done. I want someone running my brand who is both strategic and non-strategic, almost equally so. You must be able to talk with both types, at one minute debating investment choices and then be at a voice recording deciding on option A or B. You need to make tough choices but you also have to inspire all those non-strategic thinkers to be great on your brand instead of being great on someone else’s brand.

It is OK to use these words. Just make sure you use them properly.

 

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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In advertising, what comes first: the MEDIA choice or the CREATIVE idea?

Posted on 1 CommentPosted in How to Guide for Marketers

Of course the consumer always comes first. However, as you begin the advertising process, Brand Leaders need to figure out whether the creative determines the media choice you make or the media choice helps frame the creative. When I started in marketing, way back in the mid 90s, life was a little simpler because the media and the creative were both under one agency roof. The meetings were simple: you’d see your various TV script options, give some feedback and then the room would go silent and the account person would say “now let’s look at the media plan” and the media person would take you through a 15 page presentation on where else the idea of your TV script could go. You would see some magazine, OOH and even some sampling idea. Back then, there was no internet advertising yet.

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Then one day, our media folks from our agency were spun off, had a new name, moved offices and had a new President. It now just meant we had two presentations and the Brand Leader now had to make sense of things and try to piece it together. About a year into that new relationship, I was sitting there confused and asked the question: “So what comes first, the media choice or the creative idea?” The room went silent for about 5 minutes. Then of course both sides talked over each other, both saying it was them that came first.  

All Marketing Execution has to do something to the brand–getting the consumer to think, act or feel differently about your brand. Media is an investment against your strategy and creative is an expression of your strategy. Both media and creative are only useful if they connect with consumers. Great advertising must connect through very insightful creative that expresses the brand’s positioning and told in a way that matters to those who care the most. Great advertising must be placed within the consumers’ life where it will capture their attention and motivate them in the expressed desired way to meet the strategy. So really, the consumer comes first and strategy comes second. Media and creative need to work to jointly capture the consumer and deliver the strategy.  

With separate agencies, the problem now rests with Brand Leaders to figure it out. While one could theoretically argue that if the Creative Idea of the advertising is so big, it should work in every medium. That’s just not always true in reality. Some ideas just work better in certain mediums. Yet the media people could also theoretically argue that if you go for the most efficient and effective media option, the media will do the work for you. That’s also not true. The best overall advertising should work focus on what has the most impact and what has the highest efficiency.  

Here’s a solution for Brand Leaders 

The three questions you always need to keep in your head at all times: 1) where is your consumer 2) where is your brand and 3) how does the creative idea work? 

1.  Where is your consumer?

You should really understand who your consumer is, and who they are not. You need to make sure you understand the insights about them, because it’s those insights within your creative that allow you to connect with them. They’ll say “they get me”. You should always be mapping out a day in the life of your consumer. Get in their shoes and say “what does my consumer’s day look like and how will my message fit or interrupt their life?” Take a “be where they are approach” to your media. 

2.  Where is the Brand?

First thing you have to do is consider where your brand is on the Brand Love Curve where brands go from Indifferent to Like It to Love It and all the way to Beloved. At INDIFFERENT, it’s about announcement style such as mass media, LIKE IT becomes about separating yourself from the competition while LOVE IT and BELOVED you’ll start to see the growing importance of event marketing to core users or social media as a badge of honor to share with others.

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3.  How does the Creative work? (The ABC’S)

The best advertising should draw ATTENTION, be about the BRAND, COMMUNICATE the main message and STICK in the consumers head long beyond the ad.

  • Attention: You have to get noticed in a crowded world of advertising. Consumers see 7,000 brand messages per day, and will likely only engage in a few. If your brand doesn’t draw attention naturally, then you’ll have to force it into the limelight.
  • Branding: Ads that tell the story of the relationship between the consumer and the brand will link best. Even more powerful are ads that are from the consumers view of the brand. It’s not how much branding there is, but how close the brand fits to the climax of the ad.
  • Communication: Tapping into the truths of the consumer and the brand, helps you to tell the brand’s life story. Keep your story easy to understand. Communication is not just about what you say, but how you say it—because that says just as much.
  • Stickiness: Sticky ads help to build a consistent brand/consumer experience over time. In the end, brands are really about “consistency” of the promise you want to own. Brands have exist in the minds of the consumer. 
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In the reality of advertising, not every ad execution will be able to do all four of the ABC’S.  When I’m in the creative room, I try to think about which of the two ABC’S are the most critical to my strategy. If it is a new product, I want all four, but I have to have: Attention and Communication. If the brand is in a competitive battle I have to have Brand and Communication.  If the brand is a leader and beloved, I need to make sure the advertising is about the Brand and that it Sticks.   

What I recommend you do:

In a sense, you have to work the creative and media together. But that’s impossible. So what I do is hold off on making any media decisions until you see the creative idea and how it is expressed in a few media options. With all the potential media options now available, I ask for 3 executions for each creative option:

        1. Video version
        2. Billboard 
        3. Long Copy Print

Sounds simple, but here’s the logic. With those 3, I can now imagine how the advertising might work across all possible media options. 

  • The “Video” allows me to imagine how the creative would work for traditional 30-second TV ad, a 60-second movie theatre ad, 2 or 3 minute viral video for sharing or even a video you could put on a website.
  • The “Billboard” allows me to imagine how it would work with traditional media options such as out-of-home billboard, bus shelter, in-store poster, packaging copy and the back cover of a magazine.  Or if we want to look at digital, it could be a digital billboard, Facebook photo, website cover.
  • The “Long Print” allows me to imagine what how it might work with a print ad, side panel of packaging, brochures, public relations story-line,  social media feed or even a blog on your website.  

With 3 simple asks against each creative idea, it covers off most of the traditional media options, even covering the digital media. So now as the Brand Leader goes to their Media Agency, they will know how the creative idea would work against any of their recommendations. 

Obviously, we always recommend that you focus. So we’ll likely recommend a lead traditional media and a lead digital and lead social option. You need to make the most out of your limited resources of dollars, time, people and partnerships. However, if we want a creative idea to last 5 years, seeing it work across this many media options gives me a comfort that should I need that option, I know the creative idea will work.

The media math from a client’s view

While the media agency owns the media math that blows your mind, here is some simple client side media math. As clients, we have to make the most of our budgets. 

  • Your production budget should be around 5-10% of your overall advertising plan. If you have small budgets, that may creep up to 20%, but that’s it. Every time you do a new piece of creative, the production dollars go up and the media dollars go down. I’d recommend you focus on one main traditional media and have only one secondary option. This keeps your spend focused. 
  • When it comes to social media, keep in mind there is no free media options. Instead of financial capital, you are now exhausting people capital. Just like the traditional options, I would recommend one lead social media and one secondary focus. Do not try to be all things to all people.  
  • The other reason to focus is to ensure you do great executions and not just “ok”.  Pick the media that maximizes the power of the creative. Don’t exhaust the team by spreading them against too many activities.   
  • Allow 80 to 90% of your media spend be on the highly effective highly efficient media plan. That means 10-20% of your media spend can now go against high IMPACT creative ideas that you know will break through.  

Work with both the creative and media at the same time, figuring out what gives the highest return on your investment

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Consumer Insights are secrets that we discover and use to our brand’s advantage

Posted on Leave a commentPosted in Beloved Brands Explained

There is a difference in selling to someone and motivating someone to buy.

When you just sell, you start with the product and you don’t really care who you sell to. Whoever comes through the door, you start talking to them about the features of the product and look to close the deal.
Motivating someone to buy starts with the consumer not the product. Instead of selling to anyone, you have to target those consumers who are already motivated by what you do. You have to matter the most to those who already care the most. You have to understand them, to match your brand up to their needs, wants and desires.

You have to get in the consumer’s shoes, observe, listen and understand their favorite parts of the day. You have to know their fears, motivations, frustrations and desires. Learn their secrets, that only they know, even if they can’t explain. Learn to use their voice. Build that little secret into your message, using their language, so they’ll know you are talking to them. We call this little secret the consumer insight. When portrayed with the brand’s message, whether on packaging, an advertisement or at the purchase moment, the consumer insight is the first thing that consumers connect with. When consumers see the insight portrayed, we make them think: “That’s exactly how I feel. I thought I was the only one who felt like that.” This is what engages consumers and triggers their motivation and desire to purchase. The consumers think we must be talking to them, even if it looks like we are talking to millions.Strategic Thinking 2016.062

Consumer Insights are secrets that we discover and use to our brand’s advantage

It is not easy to explain a secret to a person who doesn’t even know how to explain their own secret. Try it with a friend and you will fail miserably. Imagine how hard it is to find that secret and portray it back to an entire group of consumers. Safe to say, consumer insights are hard to find.

The dictionary definition of the word Insight is “seeing below the surface”. To get deeper, when you come across a data point, you have to keep looking, listening asking yourself “so what does that mean for the consumer” until you have an “AHA moment”. You can start with the observations, trends, market facts and research data, but only when you start asking the right questions do you get closer to where you can summarize the insight. Look and listen for the consumer’s beliefs, attitudes and behaviors that help explain how they think, feel or act in relationship to your brand or category. Because the facts are merely on the surface, you have to dig, or you will miss out on the depth of the explanation of the underlying feelings within the consumers that caused the data. Think beyond the specific category insights and think about life insights or even societal trends that could impact changing behaviour.

Good insights get in the SHOES of your consumer and use their VOICE. We force every insight to be written starting with the word “I” to get the Marketer into the shoes of the consumer and force them to put the insight in quotes to use their voice.

Here are two examples of how using Consumer Insights drove business results.

  • Working in the quit smoking business, our starting point was: “Studies show that people try to quit cold turkey 7x before reaching for a smoking aid to help them quit.” That’s not insightful. That’s just a lack of deep thinking. Only when we watched, listened and dug deeper could we feel the consumers pain. When you hold a 2 hour focus group with smokers and tell them “you can’t smoke for 2 hours and we’re going to talk about smoking the entire time” you can see them getting crankier and crankier in the second hour. What we learned is smokers are actually scared to quit, because they knew they’d either fail or lose friends. The new insight we came up with was: “I know I should quit. I’ve tried to quit so many times, it’s ridiculous. I’m not myself, I’m grouchy, irritable and feel out of control. Quitting Smoking Sucks.” When we share this secret with a smoker and they say “yup, that’s exactly how I feel”. The ad they made was a Flight Attendant losing her mind trying to quit smoking, and was the highest tested ad in the company’s history.
  • Working with a bank who was trying to gain a competitive advantage by staying open late, our starting point was this fact: “Recent research shows if a Bank were to open till 8pm, that customers would use the bank 3.4x more each month and with added transactions that would mean $26 more for each customer, and nearly $32 Million in revenue overall.” That’s not insightful. That’s just a lack of deep thinking. Consumers would resent a bank if they knew they were only opening late so they can make more money from them. When we started to think like the consumer, we landed on this insight: “I am so busy driving my kids around, I can never get to the bank during banking hours. I wish there was a bank that worked around my life, rather than me working around the banks’ life.” When we share this secret with a busy mom, she says “that’s exactly how I feel”. The ad they made with this insight had a woman doing a head stand on a yoga pillow with the caption “I do my banking between yoga and taking my kids to soccer practice”. The ad was the highest performing ad in the bank’s history.

Knowing the secrets of your consumers is a very powerful asset. An insight should ONLY connect with the audience you are talking to. I hate when people say “we don’t want to alienate others”. The best brand communication should be like whispering an inside-joke that only you and your friend get. Yes, when we target, we actually do want to alienate others. That’s the only way we will truly connect. Your ability to harness those secrets into creating insights that are arresting or intriguing, fuels the creative spirit as you tell your brand’s story, launch new innovation and move the consumer through to the purchase moment.
After all, there is one source of revenue, not the product you sell, but the consumers who buy. In a tough competitive market, your ability to harness the secrets of your consumers that only you know, is a huge potential competitive advantage.

Done right, if you can make consumers want to buy, you will never have to sell.

Here is the Nicoderm ad based on the consumer insight:

 

We run brand training workshops on everything connected to marketing. Here’s our workshop on Brand Positioning:  

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. To learn more about Marketing, continue to visit beloved-brands.com where you will have access to stories on everything connected to brand management. 

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